Dollar General Taking a Slice of Walmart’s Pie
Dollar General is no Walmart killer, but according to a recent piece on Forbes.com, the chain’s focus on convenience and price is helping it grab share from its big box rival.
Mark Montagna, analyst at Avondale Partners, told Forbes that the average shopping trip in the dollar store takes only 10 minutes and his firm’s "pricing surveys revealed a market basket of goods at DG has a lower cost (nine percent) than Wal-Mart."
There’s no doubt that Dollar General is on a strong growth path. The company is moving into two new and large states, California and Massachusetts, in addition to the 38 where it already has a presence. The company plans to open 625 new locations this year, remodel another 550 and open a distribution center in California.
"Dollar General is excited about our tremendous opportunity for growth in existing markets as well as in new markets," said Rick Dreiling, Dollar General’s chairman and CEO, in a press release. "We believe the new communities and states we are entering will benefit from our stores’ convenience and value, as well as the jobs and commitment to community our stores bring."
- Discount Retailer Dollar General Taking Away Market Share From No. 1 Wal-Mart – Forbes.com
- Dollar General to Open 625 New Stores and Create More Than 6,000 New Jobs in 2012 – Dollar General Corp./Business Wire
Discussion Questions: Do Dollar General and other dollar store chains represent a challenge to Walmart’s growth prospects? What other big box chains do you see as susceptible to market share loss from Dollar General and others in the dollar channel?